SECTION 1. The General Laws is hereby amended by adding, after chapter 64N, the following chapter:-

CHAPTER 64O: TAX ON THE COLLECTION OF CONSUMER DATA BY COMMERCIAL DATA COLLECTORS

Section 1. Definitions

For the purpose of this chapter, the following words shall have the following definitions:

“Commercial Data Collector”, a for-profit entity that:

(a) Collects, maintains, uses, processes, sells, or shares consumer data in support of its business activities; 

(b) Collects consumer data, other than consumer contact information, on more than one million individual Massachusetts consumers in a month within the calendar year; and

(c) Owns, maintains, or otherwise manages a social media site.

“Consumer”, an individual who purchases goods and services from a commercial data collector or uses the services of a commercial data collector, whether charged for those services or not.

“Consumer contact information”, (a) a consumer’s email address, telephone number, telefax number, home address, mailing address; or (b) credit card information necessary to engage in a sales transaction.

“Consumer data”, any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked with a consumer, whether directly submitted to the commercial data collector by the consumer or derived from other sources. 

“Department”, the department of revenue.

“Massachusetts consumer”, a consumer whose primary residence is in the commonwealth of Massachusetts. 

“Social media site”, any website that facilitate user participation, networking and collaboration through the submission of user generated content.

Section 2. Tax Liability

There is hereby imposed a monthly tax on the collection of the consumer data of individual Massachusetts consumers by commercial data collectors. The tax shall apply regardless of the format, electronic or otherwise, in which the consumer data is collected by the commercial data collector.

The tax shall be imposed on commercial data collectors at the following rates based on the number of Massachusetts consumers a commercial data collector collects data on within the month:

A commercial data collector that collects data on 1 million or fewer Massachusetts consumers shall not pay any additional tax under this section.

A commercial data collector that collects data on more than 1 million but less than or equal to 2 million Massachusetts consumers shall pay a tax of 5 cents per month on the number of Massachusetts consumers the commercial data collector serves.

A commercial data collector that collects data on more than 2 million but less than or equal to 3 million Massachusetts consumers shall pay a tax of 50 thousand dollars per month plus 10 cents per month on the number of Massachusetts consumers the commercial data collector serves.

A commercial data collector that collects data on more than 3 million but less than or equal to 4 million Massachusetts consumers shall pay a tax of 150 thousand dollars per month plus 15 cents per month on the number of Massachusetts consumers the commercial data collector serves.

A commercial data collector that collects data on more than 4 million but less than or equal to 5 million Massachusetts consumers shall pay a tax of 300 thousand dollars per month plus 20 cents per month on the number of Massachusetts consumers the commercial data collector serves.

A commercial data collector that collects data on more than 5 million but less than or equal to 6 million Massachusetts consumers shall pay a tax of 500 thousand dollars per month plus 25 cents per month on the number of Massachusetts consumers the commercial data collector serves.

A commercial data collector that collects data on more than 6 million but less than or equal to 7 million Massachusetts consumers shall pay a tax of 750 thousand dollars per month plus 30 cents per month on the number of Massachusetts consumers the commercial data collector serves.

Section 3. Tax Collection

A commercial data collector that collects data from Massachusetts consumers shall maintain detailed records of the number of Massachusetts consumers that it collects data from per month.

A commercial data collector shall file a monthly statement with the department of revenue that details the number of Massachusetts consumers that the collector collected data from during the previous month and states the amount owed by the collector to the commonwealth for the previous month. 

A commercial data collector that fails to submit a monthly statement for the previous month within 10 days of the end of said month shall be assessed a monetary penalty amount of 5 per cent of the collector’s assessment for said month.

A commercial data collector that fails to submit a monthly statement for the previous month within 20 days of the end of said month shall be assessed a monetary penalty amount of 10 per cent of the collector’s assessment for said month.

(c) The department shall use each monthly statement to assess the amount owed by each commercial data collector under section 2 of this chapter. 

(d) Upon written notice of assessment from the department, a commercial data collector shall submit payment to the commonwealth within 30 days of such notice. 

(1) A commercial data collector that fails to submit payment within 30 days of written notice of assessment from the department shall be assessed a monetary penalty amount of 5 per cent of the collector’s assessment for said month.

(2) A commercial data collector that fails to submit payment within 60 days of written notice of assessment from the department shall be assessed a monetary penalty amount of 10 per cent of the collector’s assessment for said month.

(e) The department shall partner with any other state agency for the purposes of determining an accurate assessment of tax liability for commercial data collectors pursuant to section 2 of this chapter.

(f) The department shall promulgate any regulations necessary for the collection of tax liability pursuant to this chapter.

Section 4. Authority to Audit

(a) The Commonwealth shall have the right to conduct an audit or review of the records reasonably related to a commercial data collector’s computation of tax liability detailed within section 2 of this chapter within the previous 3 years.

(b) Within 30 days of a written request from the department, a commercial data collector shall provide the department with copies of all records related to the computation of tax liability pursuant to this chapter for Massachusetts consumers served by the commercial data collector.

(c) In the event of an alleged underpayment, the department shall provide the commercial data collector with a written statement indicating the basis for the alleged underpayment. The commercial data collector shall have 30 days from the receipt of a statement regarding an alleged underpayment to provide the department any written objection to the results of any assessment review or audit, including any substantiating documentation. Based on this exchange of information, the department shall make a final determination of the underpayment(s), if any, within 30 days of the commercial data collector’s objection and shall provide the collector with written notice of the determination.

(d) Any additional assessments due to the commonwealth as a result of the review or audit shall be paid to the department by the commercial data collector within 45 days from the date of written notification of the final decision. If the review or audit shows that amounts have been underpaid, then the commercial data collector shall pay the underpaid amount plus monetary fines equal to 10 per cent of the underpayment.

(e) A commercial data collector adversely affected by any final action, or failure to act, of the department that is inconsistent with this section may, within 30 days after such action or failure to act, commence an action in any court of competent jurisdiction within the Commonwealth. The court shall hear and decide such action on an expedited basis.

Section 5. Judicial Remedy

(a) In accordance with section 1 of chapter 12, the Attorney General is authorized to enforce this chapter. The Attorney General may, within 7 years, bring an action to recover any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant entity, in any court of competent jurisdiction.

(b) Any community media center adversely impacted by the action, or failure to act, of any commercial data collector under this chapter, may, within 7 years, bring an action to recover any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant entity, in any court of competent jurisdiction.

Section 6. Taxpayers

For the purposes of this chapter, the following shall apply to taxpayers:

There shall be a rebuttable presumption that a consumer whose information on record with or available to a commercial data collector indicates a Massachusetts home address, a Massachusetts mailing address, or an internet protocol address connected with a Massachusetts location is a Massachusetts consumer. The presumption may be rebutted by evidence that a consumer’s primary residence is outside of Massachusetts. 

A Massachusetts consumer shall be counted only once in the calculation of the monthly tax imposed on a commercial data collector. 

Business entities having common ownership as defined in section 1563(A) of the federal internal revenue code shall be treated as a single taxpayer for the purposes of meeting the definition of commercial data collector under this chapter. The entities constituting the single taxpayer are jointly and severally liable for any tax due.

The single member of a single member limited liability company shall be treated as a consumer under this chapter.

Section 7. Revenue Distribution

90 per cent of amounts collected pursuant to this chapter shall be credited to the Mental Health Resilience fund as established by section 2RRRRR of chapter 29. 

10 per cent of amounts collected pursuant to this chapter shall be distributed to community media centers in the commonwealth and further allocated proportionally based upon population.

SECTION 2. Chapter 29 of the General Laws is hereby amended by inserting, after section 2QQQQQ, the following section:-

Section 2RRRRR. Mental Health Resilience Fund

There shall be a mental health resilience fund which shall be administered by the department of mental health with the objective of developing innovative strategies for improving the mental health of all residents within the commonwealth. Notwithstanding any general or special laws to the contrary, the following amounts shall be credited to the fund: 90 per cent of the amounts collected pursuant to chapter 64O, any appropriations, grants, gifts or other monies authorized by the general court or other parties and specifically designated to be credited to the fund, and any income derived from the investment of amounts credited to the fund. All amounts credited to the fund shall be used without further appropriation to accomplish the objective of the fund. Initiatives to accomplish the objective of the fund may include, but shall not be limited to: 

Developing innovative strategies to provide recreational alternatives to social media usage for commonwealth residents, particularly youth;

Developing innovative strategies to increase the number of mental health providers in the commonwealth and achieving the goal of mental health provider availability for all commonwealth residents;

Mental health staff providing supports to summer camps and afterschool programs; and

Providing in-home therapy to children in crisis.

No expenditure from the fund shall cause the fund to be in deficiency at the close of a fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent year. The fund shall be exempt from the indirect and fringe benefits that would otherwise be assessed pursuant to this chapter.

SECTION 3. This act shall take effect upon its passage.